The research arm of the world’s biggest fund manager said two factors would support Europe’s economy and financial markets in the coming months.
Success in restricting the spread of COVID-19 and signs that shopping and travel activity was rebounding meant: “we could see the pace of recovery in the second half outpacing other regions, including the United States”.
It said the new 750-billion-euro European recovery plan was a “crucial turning point” too and will, for the first time, create a jointly issued European ‘safe’ asset of a meaningful size.
“As a result we maintain our overweight in European peripheral government bonds and are considering an upgrade to European equities,” the BII’s top strategists said in a weekly report.
Source: Economy - investing.com